Canada’s Royalton International Pulls Out of Cuba

Reports say Canadian hotel company Blue Diamond Resorts (now known as Royalton International) has left Cuba, where it has been one of the principal foreign hotel management companies for the past decade.

Under various brands, Blue Diamond Resorts has been managing and marketing more than 11,000 hotel rooms on the island – about a quarter of the total under foreign management contracts. 

The news came from Argentinian wholesale tour operator Sudameria Travel, which issued a statement Saturday stating the pull-out comes  “with immediate effect.” 

“As of this date [May 30], future reservations, inquiries, and coordination will be handled directly by the respective hotel owners and/or the corresponding local operating entities,” the announcement states.

The properties will now be administered by Gaviota, a company that forms part of Grupo de Administración Empresarial S.A. (GAESA), the Cuban military conglomerate controlled by the Armed Forces. 

The story is supported by Cuban independent digital news outlet 14ymedio, which contacted several Havana hotels previously managed by Blue Diamond under various names: the Royalton Habana Paseo del Prado, the Inglaterra, and the Regis Mystique. The English-language Havana Times has also reported on the story.

The move is reported to affect all operations associated with the brands Blue Diamond Resorts Cuba, Blue Diamond Cuba, Royalton, Memories, Starfish, Mystique, and Resonance. The official websites of Blue Diamond Resorts, Memories Resorts, and Royalton Resorts in Cuba are currently inaccessible.

The company attributes its withdrawal to “the current conditions of the Cuban tourism market and the persistent operational limitations affecting the destination, including logistical, infrastructure, and supply challenges.”

There’s a strong possibility that the decision is related to pressure from the U.S., which recently imposed sanctions against the military conglomerate GAESA. The US State Department has warned that any foreign company maintaining business relations with sanctioned entities could be exposed to restrictive measures.

Blue Diamond Resorts outside Cuba are members of Marriott’s Autograph Collection, which means they are part of the hotel giant’s popular Marriott Bonvoy loyalty program.

There have been recent reports within the travel industry that Spain’s Iberostar is facing intense pressure from the United States to suspend its activities in Cuba in order to avoid sanctions from Washington.

The decision comes weeks after Sunwing Vacations Group, former owner of the hotel chain, temporarily suspended its vacation packages to Cuba. On April 15, following fuel shortages on the Island and the cancellation of all flights from Canada, the agency announced the suspension of all its Cuba vacation programs for the summer 2026 season. The measure affected operations from all Canadian airports to Varadero and Cayo Coco between June 20 and October 9.

Royalton International, led by President & CEO Stephen Hunter, is a hospitality group with a diverse portfolio of brands, including Royalton Luxury Resorts, Planet Hollywood Hotels & Resorts, Grand Lido Resorts, Prime Travelers Club, and GoNexus Group. The company, has not publicly confirmed the decision nor issued an official statement to customers or the media. 

Travel Market Report Canada has reached out for more details.

Until recently, Blue Diamond had steadily expanded its presence on the Island through agreements with Gaviota, Cubanacán, and Gran Caribe. It was on course to surpass Melia as the island’s largest foreign hotel partner. 

The company even held exclusive management rights for the tourist destination of Cayo Largo del Sur, a first for a foreign company in Cuba. It received a special import licence enabling it to import food and other supplies.